The auditor's test of the accuracy of monetary amounts of transactions and account balances is known as:
A)Testing of controls
B)Substantive tests
C)Compliance tests
D)Application tests

Question

Quizplus · Accepted Answer

Substantive tests are specifically designed to test the accuracy of monetary amounts of transactions and account balances, which is the given scenario. Testing of controls evaluates whether internal controls are in place and operating effectively, compliance tests ensure that transactions and processes comply with applicable laws and regulations, and application tests test the functionality of computer systems and software applications.

The Auditor's Test of the Accuracy of Monetary Amounts of Transactions